A contribution income statement for Paradise Hideaway Hotel is shown below.(Ignore income taxes.) Refer to the income statement given and prepare a new contribution income statement for the Paradise Hideaway in each of the following independent situations.(Ignore income taxes.) Prepare a new contribution income statement for the Paradise Hideaway Hotel in each of the following independent situations.(Ignore income taxes.) 1.The hotel's volume of activity increases by 20 percent, and ﬁxed expenses increase by 40 percent. 2.The ratio of variable expenses to revenue doubles.There is no change in the hotel's volume of activity.Fixed expenses decline by $25,000.

Question

A contribution income statement for Paradise Hideaway Hotel is shown below.(Ignore income taxes.) Refer to the income statement given and prepare a new contribution income statement for the Paradise Hideaway in each of the following independent situations.(Ignore income taxes.)  Prepare a new contribution income statement for the Paradise Hideaway Hotel in each of the following independent situations.(Ignore income taxes.) 1.The hotel's volume of activity increases by 20 percent, and ﬁxed expenses increase by 40 percent. 2.The ratio of variable expenses to revenue doubles.There is no change in the hotel's volume of activity.Fixed expenses decline by $25,000.

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The Answer of A contribution income statement for Paradise Hideaway Hotel is shown below.(Ignore income taxes.) Refer to the income statement given and prepare a new contribution income statement for the Paradise Hideaway in each of the following independent situations.(Ignore income taxes.)  Prepare a new contribution income statement for the Paradise Hideaway Hotel in each of the following independent situations.(Ignore income taxes.) 1.The hotel's volume of activity increases by 20 percent, and ﬁxed expenses increase by 40 percent. 2.The ratio of variable expenses to revenue doubles.There is no change in the hotel's volume of activity.Fixed expenses decline by $25,000.

A Contribution Income Statement for Paradise Hideaway Hotel Is Shown